Norsk Hydro Makes Bid to Acquire Leading Polish Recycler

SEATTLE (Scrap Monster): Norway-headquartered Norsk Hydro announced that it has submitted a tender offer towards acquisition of 100% interest in leading Polish recycler Alumetal S.A. Nosrk described Polymetal as Europe’s second largest producer of aluminum casting alloys.

According to company press release, the transaction implies an enterprise value of approximately Eur 290 million. The transaction will help Hydro to strengthen its recycling position in Europe and widen its product offering in the low-carbon and scrap-based foundry alloy market. The completion of the tender offer is subject to customary terms and conditions, including obtaining clearance from competition authorities and gaining control of two-thirds of total outstanding shares of Alumetal.

RELATED NEWS:

Norsk Hydro Broke Ground on Cassopolis Aluminum Recycling Plant

Norsk Hydro Declared Production Curtailments at Slovalco

The acquisition of Alumetal will boost Hydro’s use of post-consumer scrap by approximately 150 kpty. In addition, the acquisition will result in an annual EBITDA uplift by Eur 47 million. It must be noted that the company has been focusing on strengthening its position in low-carbon aluminum by investing in recycling. The company has already set an ambitious target to double its post-consumer scrap usage by 2025.

The one-month subscription period for the tender offer is expected to commence on June 13, 2022 and end on July 12, 2022.